close video Powell is trying not to let the bond market get too far ahead of the Federal Reserve, expert says
KPMG chief economist Diane Swonk discusses the Federal Reserve’s response to inflation on ‘The Claman Countdown.’
Federal Reserve Chair Jerome Powell will serve out the remainder of his first term in charge of the U.S. Central Bank, according to President-elect Trump's pick for Treasury secretary.
Hedge fund manager Scott Bessent told CNBC that he is "in complete agreement" with Trump "that Jay Powell will serve out his term." Bessent spoke to the outlet after meeting with Sen. Mike Crapo, R-Idaho, as he visits with senators ahead of his confirmation hearing to be the next head of the Treasury Department.
Bessent's comments affirm what Trump himself said in an interview with NBC's Kristen Welker on Sunday. Though he has criticized Powell for keeping interest rates high — a move the Fed argues is needed to keep inflation in check — Trump said he has no plans to attempt to fire Powell or pressure him to resign once he returns to office in January.
TRUMP SAYS HE WON'T FIRE FED CHAIR JEROME POWELL
Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting in Washington, D.C., on Jan. 29, 2020. (Samuel Corum/Getty Images / Getty Images)
"No, I don't think so," Trump told Welker after she asked whether he would fire the Federal Reserve chairman. "I don't see it. But I don't— I think if I told him to, he would. But if I asked him to, he probably wouldn't. But if I told him to, he would."
Bessent, who is CEO for Key Square Group LP, has also voiced criticism of Powell, but unlike Trump, has argued Powell should have kept interest rates higher to stave off inflation.
FED PRESIDENT SAYS NEXT MOVE LIKELY TO LOWER RATES, BUT TIMING UNCERTAIN
Scott Bessent, founder and CEO of Key Square Group LP, appears during an interview in Washington, D.C., on June 7. (Stefani Reynolds/Bloomberg via Getty Images / Getty Images)
"If only Powell had refrained from signaling rate cuts in December and stuck to the "higher for longer" script, the economy could have slowed sufficiently to allow actual rate cuts in the coming months," Bessent wrote in a May op-ed for FOX Business. "Undoubtedly, the Fed will still be under tremendous political pressure to do so ahead of the November election, but rate cuts are likely off the table indefinitely with inflation so high."
TRUMP NOMINATES SCOTT BESSENT AS TREASURY SECRETARY; PICKS RUSS VOUGHT TO LEAD BUDGET OFFICE
President-elect Trump has said he will not attempt to fire Federal Reserve Chair Jerome Powell once he takes office in January. (Joe Raedle/Getty Images / Getty Images)
Powell's current term in office is set to expire in 2026. Trump appointed Powell to a four-year term overseeing the Fed in 2018, and President Biden reappointed him to another term in 2022.
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Powell has indicated that Trump does not have the legal authority to force him out of office early and has said he would not resign if asked to do so.
Parts of the planning system could be stripped away by the government in its attempts to speed up house building.
Consulting bodies like Sports England, the Theatres Trust and the Garden History Society will no longer be required for those looking to build under the new plans being considered by ministers.
It is hoped a reduction in statutory consultees will reduce the waiting times for projects.
Angela Rayner, who is both deputy prime minister and housing secretary, said: “We’ve put growth at the heart of our plans as a government, with our Plan for Change milestone to secure 1.5 million homes and unleash Britain’s potential to build.
“We need to reform the system to ensure it is sensible and balanced, and does not create unintended delays – putting a hold on people’s lives and harming our efforts to build the homes people desperately need.
“New developments must still meet our high expectations to create the homes, facilities and infrastructure that communities need.”
Consultees will not be completely excised from the planning process under the changes.
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Image: Angela Rayner has hailed the proposals. Pic: PA
However, instead of it being mandatory to get the opinion of such bodies, their scope will be “narrowed to focus on heritage, safety and environmental protection”, according to the government.
The government says it has identified issues like consultees failing to engage “proactively”, taking too long to provide advice, re-opening issues that have already been dealt with, submitting automatic objections which they later withdraw, and submitting advice for “gold-plated” outcomes that are unrealistic and difficult to achieve.
More than 300 planning applications have been sent up to the secretary of state’s desk in the past three years because of disagreements.
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1:45
Teesside planning row explained
The government has highlighted examples like a project to construct 140 homes in Bradford that was delayed because the application had “not adequately considered the speed of cricket balls”.
As well as reducing the number of consultees that have to be brought in, local authorities will also be told they only need to speak to the bodies if necessary, and decisions should not be held up by more than 21 days.
The government states that “existing open spaces, sports, recreational buildings and land, including playing fields, should not be built on unless an assessment has shown the space to be surplus to requirements or it will be replaced by equivalent or better provision”.
Sport England said its remit in the planning system is to protect playing fields and other spaces for physical activity.
“Britain’s childhood obesity crisis is rising and low physical activity levels cost our economy £7.4bn a year, making it vital we protect the places that local communities can be active,” a spokesperson said.
They added they “look forward” to taking part in the consultation exercise and “arguing the importance of protecting playing fields and places where local people can keep active”.
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Sam Richards, CEO of pro-growth campaign group Britain Remade and former Conservative adviser said: “I’m glad the deputy prime minister has taken on board many of the recommendations I made in my review of statutory consultees for the last government.
“It’s a step in the right direction – but there’s still more they can do. For example, they’ve not introduced a ‘use it or lose it’ approach to objections. This would remove the chance of statutory consults to intervene after they miss their deadline.
“There is also some irony in the fact that their decision to remove consultees from the process…has been put out to consultation.”
UK drivers are “confused” by the country’s electric car transition, ministers are being warned.
Although most drivers are not hostile towards electric vehicles (EVs), many are confused about what changes are coming and when, according to new research from the AA.
In a survey of more than 14,000 AA members, 7% thought the government was banning the sale of used petrol and diesel cars.
Around a third thought manual EVs exist, despite them all being automatic.
More than one in five said they would never buy an EV.
The government’s plan for increasing the number of electric vehicles being driven in the UK focuses heavily on increasing the supply of the vehicles.
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1:17
What you can do to reach net zero
In 2024, at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK had to be zero-emission, which generally means pure electric.
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Each year, those percentages will rise, reaching 80% of new cars and 70% of new vans in 2030.
Manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year.
By 2035, all new cars and vans will be required to be fully zero emission, according to the Department for Transport.
Second-hand diesel and petrol cars will still be allowed to be sold after this date, and their fuel will still be available.
There are more EVs – but will people buy them?
In February, 25% of new cars were powered purely by battery and in January, they made up 21% of all new cars registered in the UK.
But despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks.
The AA suggested the government’s plan focuses on “supply but does little to encourage demand for EVs”.
It called on ministers to co-ordinate a public awareness campaign alongside the motoring industry which directly targets drivers who doubt the viability of EVs.
“Our message to government is more needs to be done to make EVs accessible for everyone,” said Jakob Pfaudler, AA chief executive.
Which? head of consumer rights Sue Davis said: “When it comes to making sustainable choices such as switching to an electric car, our research shows that people are often held back by high costs, complex choices or uncertainty.
“The government needs to provide the right information on electric vehicles and other sustainable choices so that people have the confidence to switch.”
A Department for Transport spokesperson said: “We’re investing over £2.3bn to help industry and consumers make a supported switch to EVs.
“This includes installing a public charge point every 28 minutes, keeping EV incentives in the company car tax regime to 2030, and extending 100% first-year allowances for zero-emission cars for another year.
“Second-hand EVs are also becoming cheaper than ever, with one in three available under £20,000 and 21 brand new models available for less than £30,000.
“We’re seeing growing consumer confidence as a result.”
In the 50 days since Donald Trump entered the White House, there have been announcements and headlines almost every day.
Here’s an A-Z of the last 50 days under Trump 2.0.
A is for Associated Press, banned from White House events for still using “Gulf of Mexico” rather than Trump’s Gulf of America rebrand. It’s one of a number of changes in media access to government that favours Trump-friendly outlets.
Image: Donald Trump signed a proclamation declaring 9 February 2025 as the ‘Gulf of America Day’. Pic: Reuters
B is for bromance. French President Emmanuel Macron re-affirmed the thigh-patting friendship with Trump when both men leaned in for the tickle in an Oval Office encounter that laid bare the pair’s mutual affection. Macron addressed him as “Dear Donald” in a meeting that had Ukraine as its focus.
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0:46
Is Trump and Macron’s bromance still intact?
C is for the US Constitution, which many see as challenged by Trump 2.0. It divides power equally between the executive, legislative and judicial branches of government. Trump appears to be expanding the executive power of the president in a way that undermines the ‘checks and balances’ structure of government to suit his political will. This is being contested in a number of legal challenges.
Image: Protesters in Washington DC in January. File pic: Reuters
E is for Elon Musk, the world’s richest man and ‘First Buddy’ in the White House, who is in charge of DOGE. Questions persist around the extent of his unchecked authority and conflict of interest as well as access, through DOGE, to government and personal information.
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Image: Elon Musk holds a chainsaw during the Conservative Political Action Conference. File pic: Reuters
G is for Greenland, the mineral-rich Arctic territory belonging to Denmark which Donald Trump wants to acquire. Of the self-governing island, he told a recent joint address to Congress: One way or the other, we’re going to get it.” Denmark and the Greenlandic government say it’s not for sale.
Image: Icebergs float near Sermitsiaq Island, Greenland. File pic: Reuters
H is for how on earth did that happen? The question could apply to a number of things – let’s settle here for the AI video of a re-imagined Gaza as a luxury resort, variously populated by bearded belly dancers, a gold statue of Trump, and the president himself sat sipping cocktails with Israeli PM Benjamin Netanyahu.
Notably, it was shared on social media by President Trump, who has spoken of his wish to “own” the Gaza Strip.
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0:35
President shares ‘Trump Gaza’ AI video
I is for Indian PM Narendra Modi, who met Trump in DC but not before sitting down with Elon Musk and his children. Musk wants access to India for his Starlink internet service and Tesla vehicles. Critics say the meeting raises questions about him using his Trump-adjacent position to benefit his global business.
Image: Indian Prime Minister Narendra Modi points at Donald Trump during a press conference at the White House on 13 February. File pic: Reuters
J is for Justice, as in Department of. Long-serving officials at the DoJ have been removed, creating vacancies in traditionally non-partisan roles that opponents say Trump will fill with people who share his ideology. The president has claimed the DoJ has previously weaponised the law against him. Critics say he will do the same, against his opponents.
Image: File pic: Reuters
K is for Kash Patel, newly appointed director of the Federal Bureau of Investigation (FBI). Controversially, he once amplified Donald Trump’s threats to see retribution against political opponents, saying: “We will go out and find the conspirators not just in government, but in the media.”
L is for a list of other controversial appointments, including:
Image: Robert F. Kennedy Jr. arrives for his confirmation hearing. File pic: AP
Pete Hegseth, defence secretary, who faced allegations of alcohol abuse, sexual misconduct, and concerns about his qualifications.
Tulsi Gabbard, director of National Intelligence, who held a 2017 meeting with Syrian dictator Bashar al Assad. Following the invasion of Ukraine, she shared claims that were widely debunked and identified as Russian propaganda.
M is for Moscow. Donald Trump has been on the phone to the Russian capital several times as he resets US relations with Vladimir Putin. He wants Russia back in the G8 and the US is contemplating lifting sanctions as it seeks to improve economic and diplomatic relations.
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0:56
Are there similarities between Trump and Putin?
N is for nervousness created by the on-off tariff saga. President Trump has partially paused 25% tariffs on goods from Canada and Mexico after falls in the stock markets. Tariffs on China and other countries (TBC) remain on the agenda, in spite of trade war fears and economists’ concerns about business uncertainty, low consumer confidence and the effect on prices.
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3:27
Why are tariffs such a big deal?
O is for order, as in changing world order. Trump’s strategy challenges the geopolitics that have cemented the United States and its allies and secured peace since the Second World War. His warmth towards traditional adversaries like Russia and China suggests he’s prepared to change the political paradigm and realign a more insular America according to self-interest.
P is for Panama Canal. President Trump says he would consider using military force to seize it from Panama, one of Washington’s closest allies in Latin America. He claims, without evidence, that it’s controlled by China.
Image: A cargo ship sails towards the entrance to the Panama Canal. File pic: Reuters
Q is for quarterback Patrick Mahomes, of the Kansas City Chiefs. Trump watched him at American football’s ‘Superbowl’ in February, the first sitting president ever to attend. He praised Mahomes’ wife for her vocal support of him but there were no words for the partner of team-mate Travis Kelce. She is, of course, the singer Taylor Swift – no fan of Donald Trump.
Image: Kansas City Chiefs quarterback Patrick Mahomes. File pic: Mark J. Rebilas-Imagn Images/Reuters
R is for Rubio. Marco Rubio, secretary of state, was among cabinet secretaries who rowed with Elon Musk in a meeting over his department cuts. Trump intervened to say he still supported the DOGE mission but department secretaries would be in charge from now on. It’s the first real sign of Trump placing limits on Musk.
S is for special relationship. “We like each other, frankly, and we like each other’s country,” said Trump of UK Prime Minister Sir Keir Starmer. At a White House meeting, the PM delivered an invitation for a state visit from King Charles. The pair talked Ukraine but Starmer will have liked hearing Trump say there was “a very good chance” of a trade deal “where tariffs wouldn’t be necessary”.
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2:11
What happened when Starmer met Trump?
T is for Trudeau, as in Justin Trudeau. The departing Canadian prime minister has been a target of Trump as has Canada itself, which Donald Trump wants to make the 51st state of the US. He has insisted on referring to its PM as “Governor” and placed Canada, along with Mexico, at the front of the queue for US tariffs.
Image: Justin Trudeau holds a news conference on imposed US tariffs. Pic: The Canadian Press/AP
U is for USAID. The work of the Agency for International Development has been dismantled. More than 10,000 people have lost their jobs at the agency which spends billions on programmes worldwide, including to ease poverty, treat disease and promote democracy. It is widely viewed as a valuable ‘soft power’ tool for the US but Elon Musk has called it a “criminal organisation” and Donald Trump said it was “run by a bunch of radical lunatics”.
V is for Vance, as in JD Vance. The vice president is viewed as the right-hand man who can articulate Trump policy in a way that Trump himself can’t. His speech to the Munich security conference reflected a reshaping of transatlantic relations, stunning the room by accusing allies of ignoring their own voter concerns about free speech and migration.
Separately, he caused offence in the UK when he said a US mineral deal in Ukraine was a better security guarantee than troops from “some random country that hasn’t fought a war in 30 or 40 years”. He later insisted he hadn’t specified a particular country, adding that British – and French – troops had fought bravely alongside the US.
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1:27
Did JD Vance insult British troops?
W is for ‘wokeism’. Ending it is at the heart of the Trump agenda. He has limited diversity, equity and inclusion (DEI) recruitment policies across the federal government and military. It included the firing of the chairman of the Joint Chiefs of Staff, General Charles Q Brown. Previously, defence secretary Pete Hegseth had questioned whether he had been made chairman because he was black.
X is for X, full name X Æ A-Xii. He’s the four-year-old son of Elon Musk who, during an Oval Office news conference, wiped a bogie – or ‘booger’ – on the Resolute desk. Donald Trump, a self-described germaphobe, sent the desk to be cleaned afterwards.
Image: Donald Trump and X Æ A-12 in the Oval Office on 11 February. File pic: Reuters
Y is for Yosemite, the national park where DOGE cuts hit in an unexpected way. Some rangers and staff were let go as part of a 1,000-strong reduction in the National Park Service by Elon Musk’s agency, raising questions about what kind of efficiencies Musk is seeking.
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1:45
‘Why me?’ Musk’s DOGE department cuts national park jobs
Z is for Zelenskyy. An Oval Office news conference with the Ukrainian president ended in extraordinary, unforgettable scenes of shouting and finger-pointing when Trump and his vice president rounded on their guest. Zelenskyy was criticised for not wearing a suit and not expressing thanks during the meeting. Zelenskyy is dealing with a president who called him a dictator and claimed Ukraine started the war. It’s awkward.
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